Many citizens of the Russian Federation know a mechanism that allows them to return part of the taxes paid towards the cost of purchasing housing. Officially, this procedure is called property deduction. The exercise of the right to a tax refund attracts Russians with the opportunity to reduce the cost of a mortgage, apartment maintenance, and compensate for the costs associated with repairs.
But not everyone knows how this mechanism actually works. The lack of information on how to properly use the tax refund opportunity is complemented by the fact that the laws governing the payment of deductions change very often.
How to return tax on the purchase of an apartment in full compliance with legal requirements? What nuances should be taken into account?
Who will refund me the tax for buying an apartment?
State. In accordance with the Tax Code, citizens of the Russian Federation have the right to receive a so-called property deduction.
An amount equal to 13% of the funds spent on the purchase of housing (as well as its decoration and repair, land plot for construction) (in total - no more than 260 thousand rubles), as well as bank interest paid under the mortgage program, if it is involved (in total no more than 390 thousand, from 01/01/2014), is subject to return at the expense of deductions made by the citizen within the framework of personal income tax. In some cases, the base for calculating the deduction also includes the costs of repairing (finishing) new housing and laying communications.
Calculation of payment amounts
This question is one of the most controversial. How to return tax from the purchase of an apartment to the maximum extent (as allowed by the legislator)? How is the total amount of deduction payments, as well as annual remittances, calculated?
The main difficulty in understanding the rules regarding determining the amount of refundable tax arises in connection with periodic changes in the legislation of the Russian Federation.
Above we have a figure of 260 thousand rubles. This is the maximum amount in all cases that a citizen (as an independent individual) has the right to receive from the state. Another thing is that receiving it in practice depends on exactly when the person bought the apartment: before January 1, 2014 or after. Why?
The fact is that before 01/01/2014 there was a rule: you can receive payments only from one property. The cost of housing does not matter.
Example. Citizen Ivanov bought a country house worth 1 million rubles. In 2012, he submitted an application to the tax service for a personal income tax refund in the amount of 13% of the amount spent on the purchase of real estate.
All that citizen Ivanov can receive from the state in this case is 130 thousand rubles. Even if he buys a new apartment, he has no right to return the “balance” of 130 thousand.
From 01/01/2014, citizens received the right to return taxes when purchasing any number of real estate properties until the total amount of payments reaches 260 thousand rubles.
The most important nuance: the apartment must be purchased after 01/01/2014. If the housing was purchased earlier, then the rules that were in force before the amendments were adopted apply to it.
Another figure that appears at the beginning of the article is 390 thousand rubles. It is worth paying attention to those citizens who are interested in how to return the tax from the purchase of an apartment to a mortgage.
The fact is that this amount reflects the maximum amount of bank interest payments that an independent individual can receive. And again, in accordance with the amendments that came into force on January 1, 2014. Before that, this amount was unlimited. Accordingly, citizen Ivanov has the right to receive compensation of 13% of mortgage interest costs until he pays off the bank.
Is it possible to receive the entire deduction at once?
How to return tax on the purchase of an apartment in the maximum amount allowed by the legislator? The only way: to receive a salary, 13% of which for the year will be greater than or equal to 260 thousand rubles (in terms of receiving deductions for apartment expenses) and 390 thousand (for interest). Or in an amount reflecting both figures.
There are no other ways. And this is logical: the state provides tax refunds within the actual amounts that a citizen pays from the moment of purchasing an apartment.
More precisely, from the year in which the housing was purchased - and in this, by the way, there is some relief. Even if a person bought real estate at the end of December, he can receive a tax refund for all previous months of the year.
The laws do not yet allow receiving a deduction “in advance” (in order to compensate for payments in subsequent years of work and deductions of the required personal income tax amounts to the treasury). There are no options on how to return the tax on the purchase of an apartment in a lump sum, otherwise how to do this due to an increase in salary.
Is personal income tax just work?
Many citizens are concerned about the question: is it possible to return taxes paid not by the employer, but for other reasons? For example, when selling property or upon payment of 13% of other types of income (prizes, lottery winnings, etc.). Can. It’s just that in practice this phenomenon occurs infrequently - and many citizens are not aware that they have the right to use these payments.
When is a deduction not allowed?
The right to a refund of part of the taxes paid when purchasing an apartment cannot be exercised if:
- A person purchased housing from a close relative or work colleague, with whom a relationship was built according to a chain of command (boss, subordinate). In this case, the law defines the seller of real estate and the buyer as interdependent persons, and therefore capable of colluding in order to obtain a privilege in the form of a tax deduction.
- The person received ownership of the housing, but it was paid for by other persons (or companies). A deduction is given if the taxpayer spent personal (earned) funds on the purchase of real estate. Subsidies from the employer, maternity capital, and other payments from the state do not count.
- If the deduction has already been received (from 01/01/2014, this norm should be understood as “payment in full”).
- If a person did not have income subject to personal income tax during the period from the moment of purchasing a home to the submission of an application for deduction to the Federal Tax Service. This is quite logical. How to return tax on the purchase of an apartment if you did not pay it to the state?
Deduction for shared and joint ownership
How is the deduction calculated in cases where the apartment is in shared or joint ownership? In the first case it is very simple. The proportion is calculated in relation to the shares in ownership of the apartment.
Example. Citizens Ivanov, Petrov, Sidorov and Larionov bought an apartment. Each of them has the same share in home ownership: 25%. The apartment costs 2 million rubles. 13% of its value - 260 thousand. Accordingly, each of the co-owners of the property has the right to claim a deduction in the amount of 25% of 260 thousand, that is, 65 thousand rubles.
With bank interest it is a little more complicated. But, nevertheless, it is logical. There are two main options here. Firstly, our four friends can be co-borrowers and be jointly responsible for mortgage payments. Accordingly, the accrual of tax deductions will be proportional to the amounts paid into the mortgage.
Secondly, each of the co-owners can take out a separate loan for the apartment. The amounts may also be different. How to return the tax on the purchase of an apartment with a mortgage in this case? Very simple: in proportion to actual payments to the bank.
Let us again note a nuance that reflects the above-described amendments to the laws. If our four friends bought an apartment before 01/01/2014, then if one of them applies for a deduction, then 65 thousand rubles. - that's all he can get. In this case, it does not matter whether other co-owners did this.
With joint ownership, everything is more complicated. There are no shares in it, so the proportion cannot be calculated in any way. In this case, there is only one way out: negotiate. And if it doesn’t work out, resolve the issue in court.
How to return taxes for an apartment to a pensioner?
It is known that when receiving a pension, citizens of the Russian Federation do not pay personal income tax in the amount of 13%. Accordingly, there is no reason to return anything from the budget. Therefore, in general, pensioners do not have the right to receive a deduction. But, of course, exceptions are possible.
How to return tax from the purchase of an apartment to a pensioner, based on the mechanisms provided for by the legislation of the Russian Federation?
Firstly, a pensioner can work while retired. In this case, he can fully exercise his right to receive a deduction.
Secondly, the legislator allows pensioners to count personal income tax payments three years before filing an application for a tax refund (if any).
Thirdly, a pensioner may well be a taxpayer not as an hired employee, but on other grounds (we have already mentioned them above - other income, gifts, winnings, etc.).
There are options. It is worth noting that in each of the three scenarios listed, there will also be no problems with how to return the tax on the purchase of an apartment with a mortgage.
How to return taxes for an apartment to a woman on maternity leave?
As in the case of pensioners receiving payments, women on maternity leave do not pay taxes to the state budget. And therefore they have no formal grounds to receive payments. But here, too, exceptions are possible. How to return tax on the purchase of an apartment during maternity leave? There are options.
The fact is that the legislator allows women on maternity leave to fully deduct personal income taxes paid for the period between the purchase of a home and going on maternity leave. This could be a year, two, three or more years. It is possible that while payments for those periods are ongoing, the woman will have time to raise her child to kindergarten and return to work. In order to receive tax deductions from that moment on the same basis as other citizens.
If a taxpayer bought an apartment before going on maternity leave, then a tax deduction can be issued for income received in the interval between the moment of purchasing the home and the start of maternity leave. It is quite possible to transfer the remaining part of the payments to the income received by the woman after she starts working.
Documents for tax refund
When deciding how to return tax on an apartment purchase, a citizen will have to collect a list of documents for the Federal Tax Service.
The papers that need to be submitted to the department should be submitted in the following set.
First, you need to fill out an application (the form will be given at the Federal Tax Service office). It will indicate the essence of the request to the department, as well as the bank details where to transfer the deduction.
Secondly, you should provide a declaration of income (form 3-NDFL). It is usually issued by the employer. Less often, the citizen fills it out himself (this is relevant when the question arises of how to return the tax on the purchase of an apartment if you do not work).
Thirdly, these are financial documents for a real estate transaction: a purchase and sale agreement, bank statements about the flow of funds, receipts, etc. This also includes papers related to the mortgage. They are provided by the bank.
How soon will the tax be refunded?
The maximum period within which tax authorities check papers is 3 months. During this period, the citizen must receive payment to the bank account specified in the application. As a rule, regional branches of the Federal Tax Service meet these deadlines.
How to return taxes online?
Many Russians are concerned about the question of how to return tax on the purchase of an apartment through Gosuslugi, an electronic portal for interaction between citizens and authorities. There are no mechanisms that would fully replace the “offline” process.
Only a declaration (3-NDFL) can be submitted in a “virtual” format. At the same time, as some experts note, you will still have to go to the tax office to sign this document.
17.04.18 702 193 9
The state is ready to give you 520 thousand rubles. Take them away.
Ekaterina Miroshkina
economist
You bought an apartment: with your own money or with a mortgage. Under certain conditions, the state is ready to return part of the money to you. In total, you can get 260 or even from the budget
This article will only talk about tax deductions when buying an apartment. About finishing, mortgage interest, house construction and declaration - separately.
How to get a tax deduction for an apartment: brief instructions
- Check all conditions for deduction. You can receive a tax deduction only if all requirements are met.
- Understand the nuances of your situation. Links to analyzes of special cases are in the article.
- Choose the method of receiving the deduction: from the tax office or from your employer.
- Prepare documents according to the list from the article: make copies and scans, keep the originals at hand.
- Fill out the 3-NDFL declaration or notification application.
- Send the documents to the tax office: in person, by mail or through the taxpayer’s personal account.
- Wait for the money to be credited to your account or pick up the notice and take it to work.
- Keep track of the balance of the deduction so that next year you can collect another part of your personal income tax.
Materiel: what is a deduction
If you work officially and receive a salary, then you pay personal income tax. Usually it is 13%. And although your employer retains this money and transfers it to the budget, the money itself is yours and it is you who pay it.
A tax deduction is an opportunity to get back part of the personal income tax paid from the budget. The principle is this: the state recognizes that you spent part of your income on something useful, and allows you to deduct this amount from your taxable income. As a result, the tax base becomes smaller and you either do not need to pay tax for some time, or an overpaid amount appears, which is returned to your account.
To receive deductions, you need to be a tax resident, pay personal income tax and have confirmation that you spent the money on something necessary in the opinion of the state: bought a home, paid for treatment or education, donated to charity. If you are an individual entrepreneur using the simplified tax system, then you do not pay personal income tax - there is a different income tax and it is not suitable for deduction. If you are a non-resident, you are not given a deduction.
There are several types of deductions. For example, there are social, property, professional, standard and investment. When purchasing an apartment, you receive the right to a property deduction. The rules that apply for tax deductions when purchasing real estate do not work for other types.
In addition to the income tax refund when buying an apartment, there is a refund when selling - this is different, do not confuse it. They do not replace or cancel each other.
When it comes to deductions, two concepts are used: the amount of deduction and the amount of tax to be refunded. The deduction amount is how much the state allows you to reduce your income when buying an apartment. The amount of personal income tax to be refunded is how much money will actually be returned to you from the budget. To put it simply, the refund amount is 13% of the deduction amount.
We regularly tell you how to get maximum deductions, payments and benefits
When does the right to deduction arise when purchasing an apartment?
A deduction can only be claimed if several conditions are met.
You paid for the apartment and can prove it with documents. Payment can be full or partial, but it must be required: the amount of the deduction depends on the actual expenses. You cannot receive a deduction for an inherited or donated apartment, because you did not spend anything, which means you did not reduce the tax base. Participants in military mortgages also cannot use the deduction on a general basis, because part of the amount for the apartment is given to them by the state.
There are legal documents. For a new building, this may be an apartment acceptance certificate. A share participation agreement will not work, even if you have paid the full amount - you will have to wait until the apartment is rented out.
For secondary housing, ownership must be confirmed with a certificate or an extract from the Unified State Register of Real Estate. Documents for the apartment must be issued in your or your spouse’s name. Mom’s apartment is not suitable for deduction, even if it is actually yours and you paid for it.
The seller is not a close relative of you. When purchasing an apartment from interdependent persons, deductions will not be given. You can buy an apartment from your mother or sister, but you cannot get a deduction for such a transaction. Even if you honestly gave your mother the money for the apartment, the deduction will definitely be denied. Good faith will not help here - this has already been tested in the Supreme Court.
It is impossible to hide a purchase from interdependent persons: the tax office will check the relationship using common databases. If there is interdependence not between relatives, but for other reasons, then they will sort it out and demand the money back.
For the tax authorities, a mother-in-law is not a mother. So you won’t get a deduction for a deal with your mother, but you can get a deduction for a deal with your mother-in-law. You cannot buy an apartment from your brother for deduction, but you can buy it from your wife’s brother. Then think for yourself.
Not only close relatives can be interdependent, but also other people who could influence the terms and outcome of the transaction. For example, a common-law wife or father of a common child. But this is in theory - the tax authorities will still have to prove it.
It is possible to apply for a tax refund when buying an apartment from the son of his mother’s friend.
You have not previously exercised your right to deduction. The property deduction when buying an apartment has a limit, and each person is given one for life. The deduction above the limit cannot be used again. If you have already applied for a tax refund when purchasing an apartment and you do not have a deduction balance, that’s it, you don’t have to read any further.
Apartment in Russia. Nothing to add here.
Documents for registration of deduction for an apartment
All documents can be provided in copies, and the tax office itself will check them against the database. If you have any questions, they will ask you for the originals - they will call you and bring them to you. But this doesn’t happen often - usually scans sent through your personal account or copies filed with the declaration are enough.
List of documents for registration of deduction:
- A copy of the certificate of ownership or an extract from the Unified State Register of Real Estate.
- A copy of the contract for the purchase of real estate and the act of transfer.
- Payment documents (receipts for receipt orders, bank statements about the transfer of money to the seller’s account, receipts, sales and cash receipts).
- Certificate 2-NDFL, if you are filing a declaration.
- Application for distribution of deductions between spouses if they bought an apartment while married.
What documents should I use to confirm expenses?
The deduction will not be given if you do not confirm that you spent money on the apartment. And since cash receipts are usually not issued for an apartment, you will have to take additional care of the necessary documents.
There are several nuances with payment documents that neither the realtor nor the tax inspector will tell you about. They usually pop up when filing a deduction - then it is too late to correct anything.
Receipt. Payment can be confirmed with a receipt - and an ordinary one, not certified by a notary. The main thing is that it contains all the information about the apartment and the seller, his signature, amount and date of transfer of money. The receipt must be written by hand: if the realtor gives you a printed one on the computer, it is better to refuse and ask the seller to write it in person. This is important not only for deductions.
Agreement. Payment for deduction can be confirmed by an agreement if it contains a clause stating that the seller received the money. The agreement must be certified by a notary - this is also proof of payment. It is not necessary to present a receipt.
The Ministry of Finance is not against confirming expenses even with an agreement not certified by a notary. It is enough to indicate in it that payments for the apartment have been made in full, the buyer has transferred, and the seller has received the entire amount.
But it’s better to take a receipt. The point is not about the deduction: the Supreme Court believes that the mention of settlements in the contract does not confirm the fact of payment. The seller will be able to demand the apartment back
Bank documents. Receipts and account statements are suitable to confirm payment through a bank. An information letter from the bank will not work. Keep receipts and payments.
When to submit documents
Documents confirming the right to a tax deduction when purchasing an apartment must be submitted along with the declaration or application. If you submit a declaration in your personal account, you can attach files there. If you bring it in person or send it by mail, you can make regular copies on a photocopier. They will be checked by the tax office.
Copies are suitable for verification. If the tax office wants to check the information, it will make inquiries through its own channels: Rosreestr, the registry office, notaries or the pension fund.
If some documents are needed in originals or something is missing, the inspector can call and ask for them. Therefore, in the declaration it is worth indicating a real telephone number for communication, and having the originals at hand.
How many times can you receive a tax deduction when buying an apartment?
The tax deduction when purchasing an apartment can only be obtained once. This means that each person will be able to return a maximum of 260 thousand rubles in personal income tax when buying a home, excluding mortgage interest - that is, 13% of 2 million rubles.
If the apartment costs less than 2 million rubles, you can return 13% of actual expenses. If the property is more expensive, the deduction will be equal to the maximum possible amount - 2 million rubles, and the tax refund will be 260 thousand rubles.
But for some time now, the balance of the deduction when buying an apartment can be transferred to other properties.
You can transfer the remainder of the deduction to other properties only when purchasing an apartment. This will not work with mortgage interest - this deduction is given only for one property.
Deduction limit and transfer of balance to other objects
The deduction when purchasing an apartment is equal to the amount of your expenses. But the state is not ready to return 13% of any amount of expenses for an apartment, so it has set a limit: since 2008 - 2 million rubles per person.
The property deduction limit means that, regardless of the region and the actual cost of the apartment, one person can receive a maximum of 13% of 2 million rubles - that is, 260 thousand.
An example of calculating deductions and personal income tax for refund per person
| Apartment cost | The amount of the deduction | Personal income tax for refund |
|---|---|---|
| 1,500,000 R | 1,500,000 R | 195,000 R |
| 2,000,000 R | 2,000,000 R | RUR 260,000 |
| 3,000,000 R | 2,000,000 R | RUR 260,000 |
| 5,000,000 R | 2,000,000 R | RUR 260,000 |
Apartment cost
1,500,000 R
The amount of the deduction
1,500,000 R
Personal income tax for refund
195,000 R
Apartment cost
2,000,000 R
The amount of the deduction
2,000,000 R
Personal income tax for refund
RUR 260,000
Apartment cost
3,000,000 R
The amount of the deduction
2,000,000 R
Personal income tax for refund
RUR 260,000
Apartment cost
5,000,000 R
The amount of the deduction
2,000,000 R
Personal income tax for refund
RUR 260,000
Until 2014. The property deduction limit was tied not only to the taxpayer, but also to the object. It was given once in a lifetime and only for one apartment. If the apartment cost less than 2 million rubles, the remainder of the deduction could not be transferred to another property - this money was “burned out” and 13% of the unused amount could never be received.
For example, in 2013 you bought an apartment for 1.5 million rubles. They claimed a deduction for the amount of actual expenses and received 13% of this amount in cash - a total of 195 thousand rubles. You didn’t use the entire deduction limit - there were still 500 thousand rubles left to reach 2 million. But you won’t get 65 thousand rubles of tax back, even if you buy another apartment in 2018. The right to deduction has been used, the balance cannot be transferred. And although the rules have changed, they do not apply to those who used their right to deduction before 2014.
From January 1, 2014 the deduction limit is not tied to the object, and the balance can be transferred to other objects.
If in 2015 you bought an apartment for 1.5 million rubles and returned the tax, then when you buy another apartment in 2018, you can use the rest of the deduction and take another 65 thousand from the state.
The limit and conditions of the deduction are determined by the year in which the right to deduction arose. Not according to the period when you paid for an apartment in a new building or filed a declaration, but when you received a deed or certificate of ownership.
For example, in 2007 the deduction limit was 1 million rubles. If your right to deduction arose in 2007, and you declared it only in 2018, then you will return a maximum of 130 thousand even if the price of the apartment is 2 million or more. The increase in the deduction limit in 2008 does not apply to you.
But you are not required to use the deduction for that particular apartment. You can not declare it for now, buy another apartment (even after selling the previous one) and only then use your right to deduction - with an increased limit and the ability to transfer the balance to other properties. If the tax has already been returned to you, you cannot refuse the deduction and claim it for another apartment in a larger amount.
Carry forward balance to next year
To use the entire deduction for a year, you need to earn about 170 thousand rubles per month. Then the annual income will exceed 2 million and it will be possible to immediately withdraw the maximum possible amount of tax - 260 thousand. But this doesn’t happen to everyone, so it’s usually not possible to use the entire deduction in a year.
The remainder of the deduction can be carried forward to subsequent years until the taxpayer is returned the entire amount of personal income tax paid.
For example, if an apartment costs 2 million rubles, and income is 1 million rubles per year, then the deduction will stretch for two years. And if, at the same price of an apartment, the annual income is 500 thousand rubles, then the personal income tax will have to be returned within four years. You can stretch the deduction for any period until the state returns 13% of the entire amount of expenses for the apartment.
Exception for pensioners. If you buy an apartment in retirement, you can get a tax refund for the year you bought the apartment and three years before that. In fact, a pensioner returns personal income tax for four years at once - no one else has such privileges. You can file four returns and get a lot of money at once. It does not matter whether the pensioner works or not. When you receive a pension, you collect personal income tax for four years at once.
This rule is needed so that the pensioner receives more money while he receives taxable income. Or I was able to return the tax for a longer period - while I was saving for an apartment. When he receives only a pension, he will stop paying personal income tax and will no longer be able to take anything from the budget.
For what period can the tax be refunded?
Tax can only be refunded for the three years preceding the year the return was filed. But not earlier than the year in which the right to deduction appeared. Here's how it works.
Example with payment before title. The new building was paid for in 2015, and the title to it was registered only in 2017. The right to deduction appeared in 2017. In 2019, the owner submits declarations for 2018 and 2017. He will be refunded the personal income tax paid in these and subsequent years, but will not be refunded for 2016, because at that time there was no right to a deduction, although there were already expenses.
An example with a deduction for three years. If you bought an apartment in 2016 and registered ownership of it at the same time, but never filed a declaration, you can submit three declarations in 2019: for 2016, 2017 and 2018. The tax will be refunded for these three years.
An example with a long-term apartment purchase. It happens that people buy an apartment, but do not know anything about deductions. For example, we bought a home in 2014, but only found out about the deduction in 2019. Then you can submit a declaration for 2018, 2017 and 2016 - that is, for the three previous years. It is impossible to claim a deduction for all years from the date of purchase of the apartment, and it will also not be possible to withdraw the tax paid in 2014 and 2015 from the budget. But this will not prevent you from taking all 13% of the cost of the apartment - if there is a balance for 2019, it can also be declared according to the declaration or from the employer.
It happens that people remember about the deduction after they stop paying personal income tax. For example, in the year the apartment was purchased, it was paid, and after a while the owner quit or became an entrepreneur using the simplified tax system - he does not pay personal income tax. It will not be possible to submit a declaration because there is no tax at the rate of 13%. In this case, the three-year rule still applies. If the time for a refund has already passed, it is no longer possible to file a return and refund the tax for long periods.
How to get a deduction on your declaration
Next year or any other year after purchasing an apartment, you need to file a 3-NDFL tax return. The declaration form must correspond to the year for which you want to return the tax. Forms change, so you need to keep an eye on it. Although a formally incorrect form is not a reason to refuse a deduction, there may be other lines, codes, and even the structure of expenses.
The correct form of the 3-NDFL declaration can be found on the website nalog.ru. There is also a program for filling out the declaration. A package of documents can be sent through the taxpayer’s personal account. You don't even need to go anywhere. The tax office will check the declaration for up to three months, and then return the tax to the account.
The declaration cannot be submitted in the same year when you bought the apartment - only in the following periods. If you buy an apartment in April 2018 and decide to return personal income tax according to your declaration, you will receive it only after a year. All this time, 13% will be deducted from your salary and transferred to the budget.
A deduction-only return can be submitted on any day: there are no deadlines during the year. But if income is declared, you must report before April 30 of the next year. You cannot submit multiple declarations for the same period: each subsequent one will be considered updated and will cancel the previous one.
How to apply for a deduction from an employer
To return personal income tax when buying an apartment, you do not have to wait until next year. You can immediately avoid paying tax and receive a salary increase. To do this, you need to receive a notice of the right to deduct.
Submit a tax application - the form is in the taxpayer’s personal account, everything is filled out electronically. Attach copies of documents there and sign using your digital signature. The signature key is generated directly in your personal account.
Within a month, the tax office will issue you a notice - take it to work and immediately stop paying tax. You don’t have to wait a year and fill out incomprehensible sheets in the declaration: 3-NDFL does not need to be submitted.
In addition to the fact that personal income tax will not be withheld from you, you must also return the entire amount withheld from the beginning of the year. If you buy an apartment in September 2018 and receive a notice of the right to deduction, you will be refunded all personal income tax that was withheld for nine months - from January.
In Russia, compensation for part of the expenses incurred due to the acquisition of real estate is provided. You need to know how to return 13 percent for an apartment - use the property deduction (Article 220 of the Tax Code of the Russian Federation). How to receive an income tax refund when purchasing an apartment is regulated and established in detail by the tax legislation of the Russian Federation. So, how to get a tax deduction when buying an apartment in 2019?
Conditions for applying the right to deduction
The deduction is provided to citizens of the Russian Federation who regularly pay income tax. The percentage of deduction for the purchase of real estate is determined in accordance with the coefficient of 0.13 applied to the cost of the transaction, but within the limit allocated by the state. Mandatory conditions for a 13 percent return:
- resident of the Russian Federation;
- availability of permanent taxable income;
- use of personal funds;
- The parties to the contract are independent of each other.
The right to receive a deduction can be applied regardless of the property, that is, each of the share owners, if there are several of them, has the opportunity to own their part. This norm is innovative, since previously – until 2014 – the provision was tied to the owner. However, compensation cannot be provided if the money was transferred from other persons.
Additional conditions for return are ownership of the object or representatives. It can be:
- owners;
- the owner's spouse;
- parents of the owner, if he has not reached the age of majority.
The number of times the deduction is applied depends on the time of the transaction. If the date of the transaction is before 01/01/2014, then the deduction can be applied once, and if the transaction was carried out after the beginning of 2014, then the number of applications is not numerically limited.
Calculation and determination of the amount
How to calculate a tax deduction when buying an apartment is enshrined in the provisions and algorithms of the Tax Code of the Russian Federation. The payment and calculation of “income” is mainly carried out by the employer’s accountant. In specific life situations, the legislator has provided for the right of a citizen to receive a refund of part of previously paid tax.
The final deduction amount is calculated based on the transaction value. However, the maximum is limited by the basis for the calculation. The base is applied depending on whether the property is purchased outright or through a mortgage. For ordinary transactions, the base is a maximum of 2 million rubles; for a mortgage, an additional 3 million rubles are provided for loan repayment (for 2019).
Calculation when purchasing real estate with a mortgage occurs separately to cover the cost of housing and the mortgage. Compensation for the cost is provided one-time, and for interest - annually until the limit is exhausted. Using the example, the amount of income tax refund when one person purchases an apartment worth 180,000 rubles will look like this: HF = 1,800,000 x 0.13 = 234,000
It is worth considering that the amount accepted for calculation - the base - may include not only the direct price of the housing itself. A 13 percent tax refund when purchasing an apartment also applies to additional expenses - finishing work. Of course, these expenses can be used to calculate the amount due for reimbursement only if there is a limit. Despite the presence of a price limit, there is an option to return 13 percent if you bought an apartment at a higher price. This is available, for example, to spouses who register for shared ownership. After which they both have legal grounds for benefits. The limit for both spouses will be independent.
Preparatory stage – collection of documents
The procedure for returning 13 percent includes several steps:
- Analysis of the right to provision.
- Studying the list of documents for tax refund when buying an apartment.
- Making a request.
- Waiting for approval from the Federal Tax Service.
- Receiving monetary compensation.
Having analyzed the situation and realized that you are entitled to a tax deduction, you need to start collecting papers. Preparation of documents for a refund of 13% tax on the purchase of an apartment differs somewhat depending on the conditions.
List of required documents
The required paperwork, regardless of the method of acquiring real estate, is as follows:
- passport;
- petition();
- contract;
- evidence of transfer of personal funds;
- certificate of registration of the object (copy).
The forms required for a tax refund when purchasing an apartment can be downloaded by clicking on the links above.
Special cases
For spouses
If the object is acquired as the shared property of the spouses, then the required papers are supplemented with a marriage certificate and confirmation of everyone’s expenses.
The apartment was purchased before 2014
And for real estate purchased before 2014, you must provide confirmation of the distribution of shares. It could be:
- the court's decision;
- agreement between spouses;
Child deduction
Additional documents when receiving a deduction in the name of a minor child:
- birth certificate;
- certificate of ownership in the child's name.
Finishing work
If finishing work was carried out, then you need to provide actual proof of the costs. Everyone decides individually which documents need to be submitted for a 13% refund. If the required document is not submitted, the Federal Tax Service may refuse.
Documents for tax refund when purchasing on credit are supplemented by a loan agreement and calculation of monthly payments. There are legal and procedural nuances on how to get 13% of the purchase of an apartment with a mortgage, along with the bank commission. Since interest is calculated from the amount of money spent on payment for the year, you cannot receive compensation for all interest at once.
Registration procedure
There are two algorithms for how to return 13 percent if you purchased an apartment:
- one-time payment of the entire amount through the Federal Tax Service;
- use of future benefits through the employer.
One-time payment of 13% through the tax office
In the first option, the person who requested compensation receives the entire amount due to him in his current account. However, there is a condition - the amount of compensation cannot be more than the “income” for the previous 3 years, transferred by the citizen to the budget. If the amount of compensation is exceeded, only a portion will be paid, and the remaining funds will be transferred to the next year. The procedure for returning income tax according to the first method is based on the principle “Pay first - then receive compensation.”
Algorithm of actions if the route to the Federal Tax Service is chosen:
- Preparation of documents at the beginning of the year following the year of acquisition:
- filling out the 3-NDFL declaration;
- request from the accounting department for a 2-NDFL certificate;
- collection of transaction papers and payment receipts;
- writing a statement.
- Submitting the collected documents to the local department of the Federal Tax Service.
- Waiting for the request to be considered.
- Receiving funds.
There is only one downside to this procedure: the wait is quite long. 3 months are given to verify the applicant’s documents (in special cases the period may be extended), and a month is given to transfer funds after confirmation of eligibility. In total, 4 months or more may pass from the moment the papers are submitted until the funds are received.
Through the employer
In the second algorithm, the applicant is given a benefit for future payments. The essence of the benefit is exemption from paying income taxes. This tax refund procedure when purchasing an apartment does not oblige you to first transfer funds to the budget. This option is convenient if the amount paid is less than the required compensation.
An alternative option for applying for a tax deduction when purchasing an apartment is through the employer, using the method of providing benefits. The procedure will be like this:
- Prepare an application to the Federal Tax Service to verify and confirm eligibility.
- Wait for the verification period.
- Receive confirmation.
- Send to employer:
- confirmation from the Federal Tax Service;
- contract;
- confirmation of the amount spent.
- Receive benefits on your next salary.
This requires a month of waiting for the tax office to consider the application-request. After which, in the next billing period - a month - the citizen already benefits from compensation.
The downside is that if the amount of compensation is significant, you may not have time to take advantage of the entire deduction before the end of the year. And for the next period it is necessary to repeat the procedure for submitting a request and confirming rights. Payments are not automatically transferred to the next period.
A distinctive feature of the option to implement the deduction through the employer is that there is no need to prepare and submit a 3-NDFL declaration.
Control dates
The period for applying the tax deduction in the period after 2014 is not limited, that is, you can take advantage of the opportunity during any year after the property was purchased. There are no restrictions on the number of requests, but within the limit.
The income tax refund period consists of the period required to conduct the audit and the time required to transfer funds to the applicant’s bank account. The beginning of the calculation of periods according to the return algorithm through the tax office is January of the next year.
For example, the reimbursement period for purchasing an apartment in 2017 is summer - autumn 2019. When using a future benefit - the next month after confirmation. That is, if you request payments through your employer, then you do not need to wait for the end of the period - the year when the real estate was registered.
Reimbursement of personal income tax when purchasing an apartment can be made through the territorial Federal Tax Service by crediting money to the taxpayer’s current account or through the employer in the form of non-withholding of tax from wages when it is paid. Let's look at how to return income tax from the budget through an employer, what documents will be required to return funds through the tax authorities, as well as the algorithm for filling out the 3-NDFL declaration for submission to the Federal Tax Service
How to return 13 percent from the purchase of an apartment?
Since 2014, the procedure for returning 13 percent of the purchase of an apartment has changed slightly: now the property deduction can be used several times (when purchasing several real estate properties) within a limit of 260 thousand rubles. This limit is 13% of the maximum deduction amount for the value of real estate, which cannot exceed 2 million rubles.
If housing was purchased (built) using loan funds, the taxpayer has the right to reimburse the amount of interest paid to the bank, but not more than 390 thousand rubles.
Multiple personal income tax refunds when purchasing an apartment will be able to be made only by those taxpayers who have not used this tax benefit before, since before 2014 such a deduction could only be used once in a lifetime, regardless of the value of the property.
One more nuance should be taken into account: personal income tax compensation when purchasing an apartment can only be made in the amount of income tax actually withheld or independently paid by an individual. That is, if a person does not receive income and income tax is not withheld from him, then there is no source for tax refund.
The right to a tax deduction is ensured by subsection. 3 p. 1 art. 220 Tax Code of the Russian Federation. The standard procedure for exercising the right to a property deduction is to contact the tax service at the place of registration of the taxpayer. In this case, you will need to collect a package of necessary documents (subclause 6, clause 3, article 220 of the Tax Code of the Russian Federation) and submit them to the Federal Tax Service. The waiting period for payment is 4 months, of which 3 are allocated for conducting a desk audit (clause 2 of Article 88 of the Tax Code of the Russian Federation) and 1 for making the payment itself (clause 6 of Article 78 of the Tax Code of the Russian Federation).
To receive a tax refund, several conditions must be met:
- an individual must be a payer of income tax in the amount of 13%;
- the deduction is given only for real estate purchased in Russia;
- to pay for the property, the taxpayer’s personal funds or money given to him under a mortgage loan were used;
- the parties to the purchase and sale transaction are not close relatives or other related persons.
The time that has passed since the acquisition of real estate does not matter for obtaining a property deduction; however, only the personal income tax that has been transferred to the budget over the last 3 years can be returned.
The right to use the property deduction is also granted to the parents of a child who has not reached the age of majority, if an apartment is purchased specifically for him.
2 ways to return personal income tax from the purchase of an apartment
The taxpayer is given the right to choose how to return personal income tax from the purchase of an apartment:
- If the amount of previously paid tax on income received allows an individual to exercise the right to a property deduction immediately, then it will be possible to receive all the funds faster through the Federal Tax Service. To do this, the application must indicate a tax refund method such as transfer to your bank account.
- The taxpayer will be able to use his right to a property deduction in another way. By providing his employer (employers) with a notice issued by the Federal Tax Service confirming the right to take advantage of personal income tax compensation when purchasing an apartment, the employee can expect to receive a salary without withholding tax in the amount of 13%. If the allotted amount was not used in full, then the balance of the unused deduction is carried over to the next tax period.
The advantage of the second method is that the taxpayer does not have to wait for the end of the tax period to apply the tax deduction, because you can start using the benefit already in the same year when the property was purchased (Clause 8 of Article 220 of the Tax Code of the Russian Federation). In addition, tax inspectors will check documents for obtaining a property deduction from an employer within 30 days (instead of 3 months if you want to receive a tax refund from the Federal Tax Service).
The disadvantage of the second method is that a tax notice to the employer is issued only once during the tax period. If you change your place of work, you will be able to continue to use the benefit only from the next tax period. In addition, the employer will begin to apply the tax benefit from the beginning of the year in which the corresponding notification was received (letter of the Ministry of Finance dated January 20, 2017 No. 03-04-06/2416), and not from the moment of purchase of the property.
What documents are needed to receive a personal income tax deduction when buying an apartment?
In accordance with sub. 6 clause 1 art. 220 of the Tax Code of the Russian Federation, in order to receive a personal income tax deduction when purchasing an apartment, the taxpayer must collect and submit the following documents to the Federal Tax Service:
- A contract of sale and purchase (exchange) for a residential property (apartment, room or share in them) and also a receipt for payment for it (subclause 7, clause 1, article 220 of the Tax Code of the Russian Federation). All documents are submitted in the form of certified copies.
- An agreement on shared participation in construction or a deed of transfer of such a construction project. The document is submitted as a certified copy.
- If an apartment was purchased as a property for a child under 18 years of age, then it is necessary to provide a copy of his birth certificate, as well as permission from the guardianship authority to complete such a transaction.
- You will also need a certified copy of the certificate of registration of ownership of the commissioned real estate (for housing under construction this document is not needed, the transfer and acceptance certificate of the property will be sufficient). From July 15, 2016, instead of a “pink” certificate, government agencies issue an extract from the Unified State Register of Real Estate Rights.
- Copies of the TIN assignment certificate and the applicant’s identity document.
- In addition, it is advisable for the taxpayer to submit a certificate of employment in Form 2-NDFL. This certificate is not named in the list of required documents, but controllers have the right to request it. See details.
To receive a deduction through the tax department, you will need to submit a declaration in form 3-NDFL. It is submitted starting from the first quarter of the year following the tax period in which the property was purchased.
In order to indicate the chosen method of obtaining a property deduction, as well as the bank details of the taxpayer, an application for a personal income tax refund must be submitted. The deadline for submitting it is not regulated, but payments will begin only 1 month after its submission. In this regard, it is advisable to submit such an application along with a complete package of necessary documentation.
For a complete list of documents, see the article “Documents for tax deductions when purchasing an apartment in 2018-2019.”
After the expiration of the allotted period for conducting a desk audit (3 months if the tax is returned by the inspectorate, and 30 days if the personal income tax is no longer withheld by the employer), the tax department will inform about its decision to provide a property deduction or a refusal. In most cases, the refusal to provide a property deduction is due to inaccuracies made when filling out the declaration. The taxpayer will be able to re-submit the return, but the deadline for conducting the desk audit will not change.
How to fill out a tax return?
To obtain the right to a property deduction, an individual taxpayer will need to fill out a tax return 3-NDFL. Its form was approved by order of the Federal Tax Service of the Russian Federation dated October 3, 2018 No. ММВ-7-11/569@.
5 pages of the reporting document must be completed: title page, sections 1 and 2, appendix 1 and appendix 6.
There should be no difficulties in filling out the title page, because it contains personal information about the individual and the tax authority to which the declaration will be submitted.
Features of filling out the declaration:
- Section 1 contains the final results of tax calculations: for reimbursement or additional payment.
- Section 2 shows the entire sequence of calculating the tax base and the final tax amount.
- Appendix 1 contains information about income from a certificate issued by the employer in Form 2-NDFL.
- Appendix 6 contains information about the purchased apartment, as well as the amount of property deduction.
If the declaration is filled out manually, then on the printed form the entered data should be aligned to the left. If the declaration is filled out using a computer program, then along the right edge. Double-sided printing is not permitted, and pages should not be stapled to avoid damaging the bar codes on the left.
How to apply for a property deduction?
You can submit documents for the right to use a property deduction in one of the following ways:
- Personally. To do this, you need to find time and visit the Federal Tax Service at your place of registration. The disadvantage of this method is the waste of personal time and the need to answer possible questions from the tax inspector.
- By mail. It is better to send documents by a valuable letter with a list of attachments. The disadvantage of this method is that if the documents are not in order, then it will be possible to find out about this only after 3 months, allotted for conducting a desk audit.
- Through the taxpayer’s personal account by filling out the proposed declaration form online. Scans of documents confirming expenses for the apartment must also be attached to the declaration. The advantage of this method is that the taxpayer will be able to track the status of the return verification and the progress of the submitted tax refund application.
Results
Individuals who pay personal income tax when purchasing an apartment can take advantage of the right to a refund of previously paid tax or benefits from exemption from the withholding of 13% on income received at the place of work. In order to exercise this right, you must collect a complete package of documents and submit them to your Federal Tax Service.
The maximum amount of property deduction provided once for life is 260 thousand rubles, and you can use your right to it as many times as you like until the limit is completely exhausted. This applies to residential real estate purchased since 2014, or cases where the property was purchased earlier, but the taxpayer did not use the right to such a deduction at all.
The waiting period for personal income tax reimbursement when purchasing an apartment is no more than 4 months, and the amount of tax declared as subject to reimbursement in the form of a payment to the taxpayer’s account will be transferred to him immediately, and receiving a deduction from the employer will take longer.
The law allows you to apply for a property deduction even several years after purchasing a home, but the calculation will be made according to the standards in force in the year of the transaction.
Another important nuance - time interval There should be no more than three years between the transfer of tax to the budget and your “hike” for the tax deduction.
For example, in 2010 you bought an apartment, and decided to receive the deduction in 2014. The state will give you the money for 2012, 2013 and 2014. For 2011 - he will keep it.
In order not to get confused with the year of acquisition of real estate, you need to look at the date of state registration of the transaction, and not at the date when the corresponding certificate was issued.
When claiming a property deduction, you must be clear that it will be equal to the amount of income tax seized from you by the state for 12 months.
The balance is carried over to the next year, and so on until you “get” the entire amount of benefits determined by law in your specific case.
Since 2008, working citizens have been entitled to a property tax deduction for personal income tax in the amount of actual expenses not exceeding 2 million rubles.
This means that the maximum amount that will return to your family budget will not exceed 260,000 rubles (13% of 2 million), or 13% of the funds spent on housing costing less than two million.
Even if you buy a mansion for seven million, you should count on the same 260 thousand.
From January 1, 2014 The procedure for providing property deductions for personal income tax has been clarified. The “lion’s share” of the amendments concerns deductions for the purchase (construction) of property:
- From January 1, 2014, it is allowed to “roll over” the balance of the deduction to other real estate you purchased.
- The deduction limit does not apply to the purchased property, but to the buyer of the property. If a married couple buys property for 6 million rubles, they can count on a double deduction (from 4 million): previously they could only return tax on 2 million.
- The new rules limit the deduction of interest on a mortgage loan to 3 million rubles.
The adjusted rules apply only to those property owners whose ownership of it officially arose in 2014.
If you acquired housing earlier, but came to claim the benefit in 2014, the new procedure does not apply to you.
They can too claim your rights on the tax on the purchase of an apartment if they bought the property no later than three years after retiring. In other words, for non-working pensioners, the tax period for which personal income tax can be returned, and its amount, are limited to certain limits.
Of course, pensioners who continue to work are not subject to this rule, since they have taxable income.
The procedure for applying for a deduction is standard, like for other categories of citizens.
Options for returning property deductions
When buying an apartment, a tax refund is not the easiest procedure, so you need to be patient and study everything carefully.
There are three ways to get back previously paid taxes:
- Through the tax office (after the year for which the deduction is due).
- Through your employer (during the current year).
- Through the inspection and through the employer.
The first method is generally accepted and the most “tangible” in terms of results: after verification, a person immediately receives a substantial sum of money.
You will not need any special knowledge to visit the tax office: you will need to request a certificate from your own accounting department in form 2-NDFL, checking it, accurately fill out all the columns of the income declaration, and taking other necessary papers, contact the tax inspector.
The second method will be useful for those who are interested in rapid reaping of benefits from the purchase: you can, without waiting for the end of the year, visit the accounting department at your place of work, and from the next month receive 100% of your salary.
Before visiting the accounting department, you will still need to look at the tax office to pick up a notice confirming your benefit.
The most energy-consuming, although also the most effective, is the third method. Let’s say you bought a home in July and immediately want to take advantage of the tax benefit.
You go to the tax office to receive a notification, then give it to your accountant and since August the employer does not charge you personal income tax.
You kill the “second hare” at the beginning of next year, registering for the first half of the previous year (the period when the property was purchased).
The third method has a significant disadvantage - you will have to visit the tax authorities Twice a year, i.e. will have to spend more time.
You need to prepare the necessary documents. The package of documents looks like this:
- identification documents;
- certificate from place of employment in form 2-NDFL;
- tax refund application;
- application for a tax deduction;
- income declaration in form 3-NDFL.
A tax return in form 3-NDFL must be submitted to the inspectorate until April 30(inclusive).
“Applicants” for tax deductions may not adhere to this deadline: they have the right to submit a declaration during the whole year.
The provision does not apply to those clients of the tax service who are going to simultaneously return money for the purchase of an apartment and declare their income: for these citizens, the deadline for filing a declaration is until May 1.
Next stage - filling out the declaration. A person who has mastered a computer can easily cope with filling out a declaration on the website of the Federal Tax Service: this can be done online or download a special program for filling out the declaration.
If you have acquired your own electronic signature in advance, the tax office will accept a declaration in Form 3-NDFL sent by you by email.
In the taxpayer’s personal account, you can see all the stages of checking your return.
It is also not forbidden to deliver the declaration by mail (by a valuable letter): it must be placed in an envelope with the obligatory inventory of the attachment, as confirmation of the fact and time of dispatch. A notification of delivery would also be useful.
If you are a very lazy or extremely busy person, entrust the filling out of the declaration to intermediaries, who, of course, will do it without selfishness.
Don't forget to supply your representative notarized power of attorney. A copy of it is attached to the declaration and handed over to the inspector.
For minor family members, the declaration is submitted by their parents. Along with the declaration, the tax inspector is given a copy of the child’s birth certificate.
From the moment the declaration is submitted in Form 3-NDFL, the so-called desk audit begins, which lasts exactly three months.
Further, if no errors or intentional false information are found in your information, the tax office undertakes to transfer the money to the bank account specified in the refund application within a month.
By the way, the tax refund process with a reasonable attitude to the matter will not take up much of your time. The Tax Service copes well and quickly with this area of its activity.
In 2014, over 2.5 million Russian citizens took advantage of their right to a property tax deduction.
